State Property Fund Considers Claim in Karpatnaftokhim Privatization
The State Property Fund of Ukraine (SPFU) is exploring the possibility of claiming a stake in the petrochemical enterprise Karpatnaftokhim. This move stems from the fact that the state-owned enterprise Oriana, which is slated for privatization, previously held a share in this company. In an interview with the publication Glavkom, SPFU Chairman Dmytro Natalukha stated that the fund is analyzing assets that may hold greater value than previously assumed.
Natalukha further noted that Oriana once owned a portion of Karpatnaftokhim, which is currently undergoing bankruptcy proceedings. The majority of the company’s shares were controlled by Russia’s Lukoil and affiliated entities.
“There is a hypothesis that Karpatnaftokhim entered bankruptcy to avoid sanctions linked to beneficiaries connected to Russians,” Natalukha remarked.
SPFU Audit Reveals Widespread Issues
The SPFU is conducting an audit that has revealed over half of state-owned enterprises exist only on paper, while a significant portion of strategic assets are burdened by debts and corporate conflicts. According to Natalukha,
“If we start unraveling this tangle now, it may turn out that the Fund could theoretically claim a part of this enterprise. I’m not asserting this, but it could emerge as a result of legal analysis.”
The developments surrounding Karpatnaftokhim could significantly impact privatization processes in Ukraine. The SPFU audit, which uncovered structural problems in state enterprises, highlights the need for a systematic approach to privatization and asset management. Amid growing economic instability and the urgent need to attract investment, the efficient use of state assets has become increasingly critical.
As the State Property Fund of Ukraine navigates the complexities of potential claims on Karpatnaftokhim, it is also prioritizing the privatization of other significant assets. In light of the pressing need for economic revitalization, up to six major factories are expected to be put up for privatization by the end of the year, which could further reshape the landscape of state-owned enterprises in Ukraine.